Nifty Hits New High For The 59th Time This Year

The NSE Nifty 50 index reached a new all-time high of 25,611.95 today, buoyed by a 50 basis point interest rate cut from the US Federal Reserve—the first such reduction in four years. The rally was primarily driven by gains in FMCG stocks, with select support from IT and financial shares.

This new peak marks the 59th record high for the Nifty 50 in 2024, surpassing the previous record of 58 new highs set in 2021. Remarkably, the Nifty achieved this milestone in just 180 trading sessions this year, whereas it took 197 trading days to reach 58 highs in 2021.

To put this in perspective, the Nifty recorded 29 new highs in 2023, four in 2022, and another 29 in 2020.

Kranthi Bathini, Director of Equity at WealthMills Securities, attributes the current bullish trend in the Indian market to strong liquidity flows from both domestic and foreign investors. He noted that robust growth prospects and positive sentiment in the market have been further enhanced by the US Federal Reserve’s rate cut, which could pressure the Reserve Bank of India to consider interest rate cuts sooner than anticipated.

Interestingly, the ongoing bull run has seen the Nifty 50 index average a nearly 27 percent rally from its calendar year lows over the past five years—except for 2020, when it surged 86.7 percent from a low of 7,511 due to unprecedented market volatility caused by the COVID-19 pandemic.

As of now, the Nifty has climbed 21.2 percent from its 2024 low of 21,137. If the index continues its upward trajectory and achieves a 27 percent increase from this year’s low, it could potentially rise another 1,250 points from its current level of 25,600.